I don't understand the relationship between lower fares and profit, given at peak times there isn't a seat to be found on any route its not going to make a difference. The current subvention runs at €176 million a year
This is not a free market ecomony situation it is a heavily regulated business where safety comes first. Capacity is limited so by definition the options to expand the market and thus achieve the economies of scale for a small operator are not there. This is not like the road transport business the amount of red tape and regulatory requirements you must satisfy are excessive and for good reason. Think about the back office you need in place, not to mention you have to design order commission and gain certification for whatever train you want to run. Irish Rail won't be selling you there equipment and if they are scraping it they have already signed a deal to handle scrapping of equipment
Given the scale of operations I can't see much point in breaking things up. It makes a lot more sense to have a dedicated operator for each route but still for a intercity network which carries 11 million a year in its entirety its smaller than a single UK franchise. Dublin suburban could be run as a separate unit, it already is from an accounting point of view, Cork suburban could be as well
Economics are one thing but the fragmentation is not a good thing for passengers
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